MILITANT protestors last night vowed to continue their protests against fuel duty, despite being offered an olive branch by Chancellor Gordon Brown.

The organisers of the controversial "Jarrow Crusade", due to set off from the North-East tomorrow, said that their action was still "definitely on".

Mr Brown yesterday announced a £5bn giveaway, with a freeze on fuel duty, cuts in the price of green petrol and diesel and a boost for pensioners of £5-a-week for a single person and £8-a-week for couples.

In his mini-budget, Mr Brown stressed the help he intended to give to the haulage industry, and said his measures were the equivalent of a 4p per litre cut in fuel duty for ordinary motorists and 8p a litre cut for truckers.

The offer appears to have split the fuel protestors who brought the UK to a virtual standstill in September.

Mark Francis, vice-chairman of the People's Fuel Lobby, appeared to adopt a conciliatory tone, saying his members needed more time to consider the "complicated issues" before deciding their full response.

Mr Francis said: "There were some significant concessions given to certain sections but not enough to others."

He appealed to members of the public, farmers and hauliers to remain calm and not to resort to direct action before the 60-day deadline.

He added: "They have made an effort by offering small token gestures in many sectors. Whether these token gestures are enough, we have not made our decision."

Others adopted a more hard-line approach. Andrew Spence, a Consett farmer and People's Fuel Lobby committee member, said: "There was nothing in the statement which will help farmers and hauliers now. The (Jarrow) protest will go ahead as planned.

"We have heard that the police are trying to get an injunction taken out against us.

"We had been holding out for a sensible reduction in fuel duty, and 26.2p a litre was only ever an opening figure, but we have got nothing like that."

Brynle Williams, the Welsh farmer at the forefront of the last fuel protest, described the concessions as "an insult" to industry and the public.

Mr Brown said fuel duty would be frozen and the tax on Ultra Low Sulphur Petrol (UVLP) - which should be available in all forecourts by next year - would be cut by a further 2p per litre. It was already reduced by 1p a litre last month.

The Chancellor also announced a 3p a litre cut on ultra low sulphur diesel (ULSD).

"I recognise and understand the very genuine concerns that motorists and hauliers have," Mr Brown told the Commons.

He also acknowledged Labour backbenchers' concerns over pensions, giving extra cash and making the symbolic link with earnings in the case of extra benefits - while standing firm on the question of the basic state pension rising only in line with prices.

Mr Brown unleashed a torrent of initiatives designed to help the haulage industry and ordinary motorist.

As well as the freeze on duty and cut in price for "green" ULSP, the Chancellor said there would be a new "Brit disc" which foreign truckers would need to operate in the UK.

Motorists whose cars have an engine capacity of under 1,500cc also won, with a £55 discount on vehicle excise duty.

There was also a cut in excise duty for lorries.

On pensions, Mr Brown said not only would the £5 and £8 increases be put into place from April next year, but the following year there would be an additional £3-a-week for a single person and another £4.80 for couples.

And this year, as a special payment, the winter fuel allowance would be £200 instead of £150.

Pensioners' leaders gave a broad welcome to the measures, although they renewed their opposition to means-tested support.

The Chancellor told MPs: "We have made our choice. Investment, targeted tax cuts, keeping mortgage rates low, more for pensions and families, a stronger, fairer Britain."

But shadow Chancellor Michael Portillo accused Mr Brown of over-taxing the British people, and claimed that by planning to raise public spending by more than the country could afford, the Government would guarantee "tax increases year after year after year in the coming parliament".

Other measures announced by Mr Brown included a £200m boost for school building repairs, tax breaks for church repairs and plans to help regenerate the most disadvantaged communities and encouraging more development on brownfield land.

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